vital to all ARPA programs. I cannot overemphasize this management
strategy as the key context for planning and priortizing the ARPA program.
I believe it is the major factor that makes AFiPA so unique in the acquisition
community.
As we remain focused on meeting future military demands eind
creating fundamental change in the way we develop advanced military
capability, we will continue to pursue dual-use technology that meets
military needs and stimulates commercial product development. Central to
this dual-use emphasis is the need to integrate the military and commercial
technology and production base to ultimately provide affordable products to
defense. Partnering with industry will encourage us to find new ways to
insert new technology and new subsystems into fielded systems.
While all ARPA efforts are structured to address one of the four
challenges outlined above, the fourth challenge represents a new emphasis
on the critical relationship between economic security and national security
and presents a major opportunity for ARPA to seek maximum national
benefit from our technology investments. This is especially significant in
view of the programmed major reductions in the DoD budget which will
drastically reduce the number of weapons system purchases and will permit
only a few new weapon system starts. In this context, we will structure
many of our programs to transition through weapons system upgrade
programs.
Technology Reinvestment Project
The Administration's decision to change the designation of DARPA to
ARPA reflects our emphasis on dual-use technology development. This
emphasis is also substantially reflected in the Defense Conversion,
Reinvestment, and Transition Assistance Act of Fiscal Year 1993 and the
implementation of that legislation through what we call the Technology
Reinvestment Project (TRP). To achieve the goals of fundamental change,
ARPA has taken lead roles in a number of major initiatives that cut across
the government, including the TRP. High Performance Computing and .
Communications, Manufacturing. Education, and Electronics Programs.
Each of these is not only pioneering new innovative technologies, but are
seeking innovative approaches of transferring technology, developing a
sound technology infrastructure base, and looking at policies needed for
success.
In order to achieve the maxipium payoff from dual-use technology
investments, an interagency government team was formed by ARPA to
manage the execution of the TRP. The Defense Technology Conversion
Council (DTCC), chaired by ARPA, is administering the TRP in a fully
collaborative, interagency effort with Department of Commerce/National
322
Institute of Standards and Technology (DoC/NIST), Department of
Energy/Defense Projects (DOE/DP). National Science Foundation (NSF). and
National Aeronautics and Space Administration (NASA). This revolutionary
undertaking addresses a broad spectrum of essential industry and
technology transition programs and ensures that industry is actively involved
in shaping the programs. Our mission is to transition to a growing,
integrated, national industrial capability which provides the most advanced,
affordable, military systems and the most competitive commercial products.
We are attempting to do two mutually supportive things simultaneously:
simulate economic growth and bring defense and commercial industries
closer together.
The eight statutory programs fall naturally into the three TRP activity
areas: dual-use technolo^ development, technology deployment, and
manufacturing education and training. Approximately $240M will be
invested in creation and development of dual-use technologies. Specific
activities supported will seek to find commercial uses for existing defense
technologies— so called spin-off; they will also seek to find defense uses for
existing commercial technologies— so called spin-on; and they will seek out
promiising new dual-use technologies. Emphasis is being placed on leading
edge technologies; eleven key technology investment areas have been
identified in order to focus the program. We expect significant involvement
in these programs from the DoD Laboratories, DOE Laboratories, and NASA.
Approximately $180M will also be invested in technology deployment
activities. The emphasis will be on assisting U.S. small manufacturers and
other enterprises to improve their performance. This will include the
addition of more manufacturing technology extension and outreach centers,
and the improvement of information flow between business, government and
academia. Assistance will also be targeted at the task of identifying
technology sources most suitable for the private sector, especially small
firms. NIST is playing a major role in executing these programs.
Approximately $50M will be invested in our most important national
resource: education. Specifically, it viall be invested in manufacturing
education and training. This will include support for additional Engineering
Research Centers, innovative engineering curricula such as practice-
oriented engineering masters degree programs, as well as activities that
support vocational education and training. NSF is the key team member for
these programs.
To date the TRP team has published an information and planning
document knowm as the "red book", which addresses the eight programs
specified in the law. identifies potential activities to be undertaken in a
single competition, and describes the evaluation criteria for awarding
activities to psirticipants. As you know, each program has a unique focus,
however three statutory requirements are common to cill: all programs
require competitive awards, all programs require cost sharing of at least 50
323
per cent, and all programs contain specific participation and organizational
requirements. In May the actual TRP solicitation will be published, with
proposals due in July, and iniUal awards beginning prior to the end of FY93.
As with any new effort, we have identified several issues need our
attention:
1. The large defense contractors that are primarily military
suppUers may have great difficulty converting to commercial products. The
problems rzinge from internal culture to a lack of understanding of the
marketplace. While these large companies sort out their conformation
strategies, we believe that we can be successful by placing emphasis on the
first, second, or third tier of defense subcontractors. These companies have
the culture and structure to make the conversion since many already
participate in both military and commercial markets.
2. Another issue in implementation of the TRP is the allocation of
intellectual property rights (technical data, copyrights, patents) and
associated policies which are vital to successful commercialization. The
statutory allocation of patent rights, for example, generally allows the
contractor or subcontractor to obtain title to patents issued as a result of
inventions made under government contract. However, the government
retains a paid-up. royalty free license to practice or have the invention
practiced on its behalf for governmental purposes including competitive
procurement. In addition, the government retains "march-in rights"
allowing it to recapture commercial rights in the invention under certain
circumstances. This approach is frequently a disincentive to
commercialization.
To help alleviate this problem we believe that a flexible approach can
be successful through the use of agreements authority. ARPA has the legal
authority to enter into "other transactions" under Section 2371 of Title 10.
U.S. Code. These other transactions are not governed by the statute that
controls patent rights under contracts and grants. This gives AFiPA the
flexibility to craft intellectual property provisions to meet the goals of a
particular transaction.
3. The legislated cost sharing requirements pose real problems for
some TRP participants. The rules are difficult: among the eight programs
there are six different formulations for cost sharing. More consistent
language and definitions for some terms would be helpful.
There appears to be inconsistency between the clear Congressional
intent to Involve small and medium sized businesses in these programs and
the strict cost sharing requirement of at least 50 per cent. Large well-
financed commercial firms may find the programs attractive, but for small
firms cost sharing may mean they cannot participate at all. Establishing 50
per cent cost sharing as a goal where practicable, with lesser sharing
324
expressly authorized to maximize small and medium sized business
participation is recommended. This would enable funding agencies to work
with small and medium sized businesses on a flexible basis.
FY94 Program
Our program is structured into three primary areas: (1) the
continuation of the Technology Reinvestment IniUatives. (2) the
continuation of the technology creation and maturation programs (Innovative
Technology Development), and (3) military systems application and
demonstration programs (Military Applications). In addition to the
technology reinvestment initiatives, the vast majority of our innovative
technology investments have commercial market potential as well as fill
military needs. Demonstrative of our commitment to emphasize dual-use.
we will continue to interact with non-DoD agencies, as well as increase
Interactions with commercial industries to develop strategies for integration
of military and commercial products and processes. I emi also pleased to
report to you that we are providing funds in FY94 to continue several key
programs the Congress has augmented over the past few years. These
programs include High Definition Systems, Lithography. Electronic
Packaging, and Materials. Developing manufacturing processes is our key
thrust in implementing these programs.
Technology Reinvestment Initiatives
We plan to continue the programs initiated in FY93 under the
Technology Reinvestment Project. In FY94 approximately $340M has been
allocated to these programs. Since industry proposals for FY93 will not be
received until July, it is difficult to specifically describe the key investments
to be made. However, based on inputs from industry and multiple agency
discussions, current plans are to continue activity in all eight FY93 statutory
programs, with particular emphasis on the Defense Dual-Use Critical
Technology Partnerships. Defense Advanced Manufacturing Technology
Partnerships, and Regional Technology Alliances Assistance Programs. The
extension and assistance type technology deployment programs will be
executed in close collaboration with DoC/NIST. As viath the FY93 effort, key
technology Investment areas will be finalized after receipt of proposals for
the FY93 program. Based on current industry dialogue, assessments of
military needs, and discussions with other agencies, emphasis will include
information technologies including networking, materials, aeronautical, and
vehicle technologies.
We plan to continue execution of the programs in collaboration with
other agencies. Since these agencies, particularly DoC/NIST. have increased
their budgets for these types of initiatives, collaboration between
government agencies is critical. The White House, both the Office of
325
Science and Technology Policy (OSTP) and the National Economic Council
(NEC), will provide overall leadership for this collaboration.
Innovative Technologjr Development
The ARPA FY94 program for investment in innovative technology
development includes a major emphasis on a broad spectrum of information
technologies including: semiconductor manufacturing, microwave integrated
circuits, electronics design and manufacturing, high definition systems, high
performance computing and software engineering. In addition, we are
continuing efforts in materials and portable energy sources, and the
relatively new area of microelectromechanical systems (MEMS). All of these
Investment areas have two factors in common: a significant potential for both
military and commercial applications (dual-use) and a significant investment
in manufacturing process technology accompanying the development of new
devices and products. Our goal is to deliver advanced technology in military
products that are also affordable products. The following paragraphs briefly
discuss our plans in these areas:
INFORMATION TECHNOLOGIES
ARPA will continue to put major emphasis on a broad spectrum of
technologies that support information technology in FY94. Our programs
range from microelectronics, electronic packaging and displays to high
performance computing, with increasing emphasis on network technology.
We believe that information technology will have a pervasive impact on a
wide variety of new innovative military systems and will continue to be the
fastest growing commercial market. This emphasis on information
technology is central to the overall ARPA strategy to create fundamental
change in military capability and represents a major opportunity to maintain
or capture wide leadership in the commercial market.
Semiconductor Manufacturing
To meet the future demand for affordable, advanced microelectronics
we believe it is as important to develop and demonstrate semiconductor
manufacturing processes as it is to advance semiconductor technology.
ARPA has a substantial program in semiconductor manufacturing including
continued sponsorship of the SEMATECH program and advanced
lithography technology. Our program is a coordinated effort that seeks to
create an environment for low-cost, flexible semiconductor manufacturing at
the state-of-the art.
The SEMATECH program is the premiere example of ARPAs
sponsorship of a true dual -use technology program through cooperative
partnerships and cost sharing with industiy. This partnership includes
6
326
companies that supply the majority of the integrated circuits in the U.S.
ARPA's FY94 efforts will focus on the manufacturing tools and methodologies
needed for low cost, flexible, scalable manufacturing to meet defense and
commercial needs. Currently the industry is optimized to produce single
part types in large volumes. Emphasis will be on combining advances in
manufacturing equipment with software innovations to enable state-of-the-
£irt microelectronics manufacturing facilities capable of producing many part
types in rapid turn around time and with reduced cost sensitivity to
mcmufacturing volume. The resulting programmable and scalable factory
system will be capable of supporting multiple technology generations with
first-pass success, in a cost effective manner. This capability is vital to the
creation of leading edge defense and commercial information systems.
ARPA's Advanced Lithography program is addressing long term
developments required to establish the manufacturing capability for
advanced semiconductor components for 1995 and beyond. Lithography is
the key technology which has enabled the dynamic growth of the
semiconductor and integrated circuit industry over the last two decades.
Our program will develop capabilities for fabricating circuits with feature
sizes of 0.18 - 0.1 microns. Current manufacturing utilizes 0.5 micron
minimum features. Key developments being pursued include mask
technology, improved alignment and overlay techniques, metrology, and
systems development. Various exposure sources including x-ray, electron
beam, and ion beam are being studied, and device demonstrations are being
conducted to establish viability of developed systems. This research is a
lynch pin in driving the advancement of the U.S. microelectronics industry
and ultimately the improvement in system performance related to speed,
power, weight, and reliability.
Microwave and Millimeter Wave Monolithic Integrated Circuits (MIMICs)
In contrast to digital microelectronic devices, MIMICs are solid state
circuits that receive, transmit, and process analog microwave signals. These
sensors can be considered the "eyes and ears" of equipment operating at
microwave frequencies. MIMICs can either amplify received signals and
send them to the digital processing portion of a system or transform digital
information into microwave signals that are transmitted by an antenna.
ARPA's MIMIC program was initiated in 1988 and has made significant
strides in the development of improved gallium arsenide material and
associated manufacturing, packaging, and test capabilities. The 1994
program will complete the development of fully integrated design,
manufacturing, and testing capabilities that can produce a wide range of
advanced microwave /millimeter wave circuits at low cost. These circuits
are required for subsystems and components for both DoD and commercial
systems, including smart weapons, communications, and radar.
This program is an excellent example of dual-use technology where
ARPA has helped create a new industry capability. This area is at or near
327
"ignition" in terms of a self sustaining industrial base capability to supply
both military and commercial products. Today, several of these suppliers
are exporting devices (not technology) to several countries.
Electronics Design and Manufacturing
ARPA's initiatives in electronics design and manufacturing are aimed
at improving the design and manufacturing processes of complicated
systems as well as improving performance through innovative packaging
concepts.
ARPA's Electronic Packaging and Interconnect Technology program
will result in the availability of new packaging technologies which enable
electronic systems to be implemented with greater functional density,
significant weight and volume reduction, and improved performance in
terms of reduced power requirements and increased speed, all at lower cost
and in shorter times. In addition to a sustaining military demand for high
performance electronic subsystems, a huge and rapidly increasing world
market in the electronic products Industry demands dramatic increases in
product sophistication and continually Improved performance and features
at little or no Increased cost. ARPA has $90M budgeted for packaging
activities in FY94 to focus on advancing technology, developing applications,
improving accessibility, and advancing mcmufacturablllty and aifordability.
Initiatives in the advanced technology development area Include high
density interconnect substrates, conformal electronics, high speed and
mixed signal technologies, and superconducting Interconnects. In the
application development area we are optimizing Integrated circuits and
system architectures to take advantage of this technology and accelerate its
insertion into military and commercial applications such as high end signal
processors, computing, and personal communications.
We are also developing the technology and Infrastructure necessary to
provide system designers with easy access to advanced packaging
technologies. Specific goals in this area Include one month turn around and
$25,000 non recurring costs for semi-custom modules. We have an
initiative underway to develop the equipment and processes necessary to
produce high density electronic modules at a cost comparable to, or lower
than traditional approaches. Specific goals include a substrate with
400cm/cm2 interconnect density at a cost of $4/cm2. We believe we have a
comprehensive electronics packaging program that will ensure an end-to-
end capability to rapidly acquire electronic modules and subsystems for
insertion into critical military systems and promising commercial markets.
In the Rapid Prototyping of Application Specific Signal Processors
(RASSP) program ARPA is seeking to dramatically improve the process by
which complex digital systems, particularly embedded signal processors are
specified, designed, documented, manufactured, and supported.
Improvements are measured in terms of product cycle time, life cycle cost
8
328
and product quality along with portability, ease of use, and affordability. The
domain of embedded signal processing has been chosen because of its
importance to a wide variety of military and commercial applications, "these
include automatic target recognition, communications, adaptive signal
sorting, character and voice recognition, and image processing. The
program has adopted a "Model Year" methodology as a way of stressing the
Importance of continuous improvement, meeting short development cycles
(three to 12 months), and avoiding point design solutions. A key aspect of
the Model Year methodology is standardization of hardware and software
interfaces. The program strategy is to develop the appropriate
architectures, methodologies, and a comprehensive design environment
utilizing virtual prototyping. Although the program is under AFIPA
sponsorship, all three milit£iry services are active participants.
In the Manufacturing Automation and Design Engineering (MADE)
program we are developing and demonstrating key software elements for
Integrated Product/ Process Development (IPPD) and agile manufacturing
applications for both mechanical and electrical design. The application
focus is on mechanical parts and electromechanical assemblies, where
today's automation environment is neither integrated nor flexible. MADE
will develop advanced automated CAD/CAE software generators that will
enable sharing, reuse, and merged product and process models, and
ultimately pave the way for populating an interoperable tool set in the
electromechanical system domaiin. Initial demonstrations will be conducted
on assembly of infrared seeker and sensor components. MADE will also
establish an open architecture and interface protocols to make it easy for
new tools and services to plug in to the evolving set of services accessible
over widely available networks. The technologies targeted by MADE are on
the critical path to creating the IPPD and flexible/agile manufacturing
processes need to achieve significant reduction in acquisition time and cost
for future defense and commercial systems.
High Definition Systems (HDSl
The ARPA HDS program encompasses the development of a wide
variety of technologies associated with high definition systems including
displays, display processors, sensors, software, high density storage,
packaging, and manufacturing. The program's overall goal is to achieve a
design and manufacturing capability that can provide for and sustain the
affordable use of high definition technology in DoD and commercial systems
In the late 1990s and beyond. Display efforts include flat panel and head-
mounted displays using active matrix liquid crystals, electroluminescence,
plasma, and cold cathode technologies; projection displays using digital
micro-mirrors, liquid crystals, and laser projection; as well as efforts in
manufacturing and enabling technologies. Modeled after SEMATECH. a
consortium of display manufacturers working in partnership with the
government on display industry infrastructure is being established. The
$57M FY94 ARPA HDS program is developing displays for use in eiircraft.
329
tanks and shipboard applications; graphics algorithms and scalable image
processors; data compression techniques; and technology for manufacturing
higher resolution, full-color displays.
High Performance Computing and Communications
The ARPA High Performance Computing (HPC) Program is now
halfway through its initial five year plan and is focused on developing the full
range of technologies needed for a scalable technology base of interoperating
workstations, networks, and parallel computing systems with mass storage,
systems software and development tools. These technologies will enable
solutions to some of DoD's most difficult computational challenges while
providing the foundations of an information infrastructure needed in this
decade. Coupled with both the Technology Reinvestment Program and
other ARPA efforts, the computing technologies being developed and
demonstrated represent the best information technologies available to meet
DoD and commercial needs. The program consists of three major areas plus
supporting technologies: Scalable Systems, Scalable Software, and
Networking Systems.
The HPC Scalable Systems area is pushing the frontiers of computer
architecture, component technology, and systems technology for desktop
workstations through the largest scale heterogeneous systems. The goal is
to develop a modular technology base that will enable a variety of system
configurations over a wide performance range. In Fy94. we plan to build
upon the successes of the program and extend the scalable technology base